CEBU Landmasters, Inc. (CLI) registered a 6% decline in attributable profit for the second quarter of 2019 as most of the projects completed for the period are part of joint ventures.
In a regulatory filing, the Cebu-based real estate developer reported a net income owed to the parent of P255.8 million in the April-June period. This is due to the back of a 20% increase in revenue to P1.63 billion.
"This is a result of the completion rate. Most of those completed in the first half are mostly for joint ventures, so it's slower, "CLI chief financial officer Beuregard Grant L. Cheng told a media briefing in Taguig yesterday.
For the first half of the year, the parent's net income rose 13% to P854.34 million after a 34% increase in revenue to P3.495 billion.
The listed company said it remains on track to achieve a credible profit of P2 billion for the whole of 2019, as unrecognized revenue reached P12.9 billion by the end of June.
"Internally, we are well on our way and we are pretty confident of hitting our directions," Mr Cheng said.
The company attributes its growth in the first half to high-end projects such as 38 Park Avenue in Cebu City, as well as timely construction of its projects, which allows it to quickly roll over blocks.
Booking sales for the period amount to P5.26 billion, driven by sales of a newly-opened residential project called One Paragon Place in Davao City, which is now 78% sold.
CLI also benefited from its growing leasing portfolio, generating a 16% increase in revenue to P27.7 million. The company finished the first half of the year with 11,815.15 square meters (sq.m) in gross leased space, with another 69 234 sq.m. under construction. Its goal is to have 200,000 square meters under its network by 2023 – Ara B. France